Democratic Sentinel, Volume 18, Number 40, Rensselaer, Jasper County, 19 October 1894 — BUSINESS MEN TALK. [ARTICLE]

BUSINESS MEN TALK.

EFFECTS OF THE NEW TARIFF LAW ON PRICES. The General Tendency Is Toward Txiwer Prices or a Better Quality of Goods For Prices Formerly Paid For Inferior Goods. [Peru (Ind.) Sentinel.] Four years ago The Sentinel laid before its readers statements of a number of our leading merchants as to the effect of the McKinley law upon the prices of merchandise and upon trade generally. That-law having been repealed, and a new tariff law enacted by the last congress to take its place, we have thought proper to interview the same merchants as to the effect of the new law on prices and upon trade in their various lines. We herewith publish the statements of 1890 and 1894, in parallel columns, and submit them to our readers without comment, leaving them to make their own deductions from the statements of the persons interviewed, all of whom are well known as leading business men of our city: 1890 1894 John S. Lenhart, of John 8. Lenhart, of the firm of Lenhart A the firm of Lenhart & Sons, said: Sons, says: “Houses with which “The passage of the Ido business have sent new tariff law has out notification that had the effect of owing to the passage cheapening all goods of the McKinley bill in our line and of many goods in our line stimulating trade, have been advanced. Trade lias improved Looking glasses have perceptibly within the advanced from 10 to 25 past month and as tlie percent. Coffin trim- new schedules of mingsof all kindshave wholesale prices have advanced from 10 to 15 enabled us to buy our percent. All kinds of goods cheaper than upholstered goods are formerly we can afdernandins an in- ford to and do sell creased price on ac- them cheaper. The count of the Increased placing of lumber on price of the material the free list will not used in upholstering, benefit furniture manVamish has also been ufacturers as much as placed up a notch. I users of pine lumber have noticed that the and other timber and general tone of all lumber in building, manufactured goods is but it will have a tenupward and yet I dency to make furnihaven’t heard of man- ture cheaper. The ufacturers paying any heavy cuts in plushes, more to their hands, velvets, carpets and There is general dis- oilier materials used satisfaction all over in upholstering, also the country among the reductions on glue, business men with paints, oils, varnishes, the effects produced piateglass, etc., will on trade.” enable retailers to sell a much better quality of goods at the same price they were formerly compelled to charge for inferior goods and to sell the inferior goods at a less price than under the McKinley law.” 1890 1894 J. W. Ellis, of the J. W. Ellis, of Ellis, firm of Ellis, Stiles & Stiles A- Co., carriage Co., said: manufacturers, says: “There has been an “The passage of the advance in all kinds wool schedule of the of material going into new tariff law' hasenthe manufacture of aided us to give our carriages and buggies, customers a better Manufactories in tills grade of cloth in trimcountry have ad- mi ng for the same vanned their prices, price they formerly The cloth and finish- paid for lighter goods, ings have all ad- We can now give them vanced. Axles and cloth weighing 18 steel tires are higher ounces to the yard for since the passage of tne. same price wo tile bill. An increased formerly had to charge price for material for 111 ounce cloth: means an increased about the same for lo price for the finished ounce that 14 ounce product, which means cloth cost under the fewer sales. Fewer McKinley law. Resales means the cm- ductions in cotton fahployment of fewer rics will also enable hands. I regard it as us to use better and a most unjust meas- heavier grades of enure. It affects all amcl goods,buckrams, classes and the con- etc., without increasstimer has to pay it all ing the cost of finished in the long run. When vehicMfa. Free lumber will the people have will probably enable the sand ami moral manufacturers of courage to rectify tlie hubs. wheels and wrongs that are being bodies to make lower heaped upon them?” prices to vehicle manufacturers, as will also reductions in paints, oils, varnishes, leads, etc., as well as iron and springs. The result will be a very much better grade of vehicles for the same prices formerly paid under a high tariff system for ordinary work.”

1890 1894 Beck & Reilly, when John H. Beck, hardapproached on the ware, stoves and tlnquestion, said: ware: “There has been “Prices of foreign an advance in many cutlery will be much things handled by us lower than under the and nearly all kinds of McKinley law by reahardware have al- son of the reduction of ready advanced since import duties on the the passage of the bill. same. Tin and mannTin was advanced facturcrs of tin will from $10.50 per box to also be lower for the $12.50 per box, and sol- same reason. Buildder from 15 cents to 18 ers' hardware will cents per pound. Of probably remain about course the man who the same as at present, now has a tin roof put Nails will be some on his house or desires lower; glass will also anything in the tin be considerably cheapline will have to pay er; paints will tend the extra cost. We re- downward, as will gardlt as a very un- nearly all goods in my just measure, and it line. Builders will will fall heavily upon notice quite a differthe consumer.” ence in the cost of tin roofing from the rates that we have been compelled to charge for the past, three or four years. They will be doubly benefited by the new law, as they will be able to buy a much better quality of roofing tin for less money than they have heretofore had to pay for poor tin.” 1890 1894 Ed T. Gray, when Ed T. Gray, dealer approached on the in vehicles, harness, question, said: robes, horse furnish“I haven’t invest!- ings, etc.: gated the subject very “The new tariff law much, but from notices tends to make all received from whole- goods in my line cheapsale houses I have er. 1 bought a bill of been informed that goods last week 33U leather has been in- per cent less than I creased from 10 to 15 was compelled to pay per cent. lam certain for the same class of that all kinds of cloth goods under the Mcwill be higher, espe- Kinley law. In fact, etally in plush gowis. the bill 1 laid In last Horse blankets will be week is a better grade higher, but as I bought of goods than we were all my goods in that offered under the old line before the bill system of high tariff, took effect, prices will My customers will, of not be materially course, get the benefit changed for the pres- of the reduced wholeent at least.” sale rates, because having purchased my stock at lower figures lean make my regu- ■ X. ': lar margin of profit and still sell them at lower prtoee than those which have prevailed heretofore," 1890 1894 Julius Falk said. Julius Falk, the “The goods in my clothier and gents’ line that are bought furnisher: from this time on will “My business for the be very much dearer, months of August and especially is this so in September of this year worsted goods. The has been much heavretailers will be com- ier than during the polled to charge the same period of last consumer the advance year, but not up to the m price. I have been mark of 1892. I am keeping an eye on the selling woolen suits, McKinley bill and to .overcoats, hats, caps forestall a rise in and underwear lower prices bought SIO,OOO than ever before and worth of goods which the demand seems to I now have on my be for the better dtelves, and over $25,- grades of goods. The POO worth of staple reason why custom§°ods for next sum- ers are buying the ier. I have now lying higher grades of goods IB Chicago more this year is because V-. . ... ■ >

worsted goods than the) can get the best | any 10 retailers in Chi- in the market for i cag" have, which I about the same prices i bought before the bill that we have had 1 affected them. Yes, it to ask them for will be hard on the Inferior goods herefellows whobuynow." tofore. There can be no question but what the removal of the import duties from raw wool will have the effect of lowering prices and of improving the quality of woolen fabrics at the same time. There la a marked tendency tote,;. ward improvement in the style, quality and finish of all kinds of clothing. The sharp competition among manufacture r s has naturally brought this about. Footwear and rubber goods have changed but little In price, but the same rule of better values for the same money applies to those lines as well as to all otiiars in which I deaL” 1890 1894 Felix Levy of the Felix I-evy of the French Bazaar said: French Bazaar: “I have received “As a result of the, many circulars from reductions on cotton wholesale houses in goods domestic cottons which they refuse to are selling 25 per cent fill orders at the old lower than under the prices. Plushes have old system. Prices of advanced from 30 to 35 woolens remain about per cent, and those the same, as the woolthat cost $5 per yard en schedule of the new before the enactment tariff law will not go of the law are now sell- into effect until Jan. ing at from $6.51> to 1, 1895. After that date $6.75 per yard. The I think prices of the goods affected most cheaper grades of are of a cheaper nat- woolen goods will fall ure, those selling from 25 per cent and of the 15 to 50 cents per yard finer grades about —that is, woolen goods or 15 per cent. The and cashmeres. We general tendency of handle a corset that prices on all goods in formerly cost $24 per our line where the tardozen, and we are now iff rates have been reinformed that they duced will be down•will cost us $27. The ward'. The present bill is a hard blow to stocks were purchased the merchants, as it under the McKinley wiU be a difficult mat- law and prices will ter for them to make probably not change their customers be- materially until after lieve that the advance Jan. 1. Then I anticiwas made necessary pate an adjustment of by the new law. It retail prices to correwiH work great hard- spond w'ith the new ship." law. There is no doubt but what better goods can be sold under the new law after all the schedules are in force for the same money inferior goods have brought under the high tariff laws.” 1990 1894 Hugh McCaffrey, Hugh McCaffrey, when asked what of McCaffrey & Co., goods handled by him grocers: would be affected “I have been too most, said: busy lately at the mill “I have not hud the and with other mattime to investigate all ters to carefully examtlie phases of the bill, ine all of the schedbut from what I have ules of the new tariff learned from word law bearing upon the sent out from the large grocery business. I wholesale houses, 1 can can say, however, that say that queensware, word received from glassware, cutlery and home manufacturers, tinware will all be jobbers and wholemade higher. The salers Indicate that American factories there will be reduoare all stiffening up tions in many lines, t heir prices on account By reference to our ados the McKinley bill, vertisement in this 1sThe consumer will sue of The Sentinel have to pay the ad- your readers can see vance.” for themselves what we are doing in the way of cutting prices. There is no guess work about our statements in our advertisement. They are the prices we are offerin g our customers. There are many phases of tlie grocery business wlii c h would ’reqnire much space to speak of in detail. A list, of the prices at which we are offering goods tells the story." 1890 1894 George C. Miller, of George C. Miller, of the firm of Shirk & Shirk* Miller: Miller, said: “Business is consid“Tliere can be no ernbly better than it question that tlie now was last year, but not law is haling a very up to 1892. The gendecided tendency to eral tendency of the increase tlie prices of new tariff bill is to many lines of goods, lower prices of goods Especially Is tills true in nearly all lines. We in worsted goods, tin, are selling woolen carpets, queensware goods, such as flannels, and boots and shoes, blankets, dress goods While I do not think and woolen clothing, that the bill is brought underwear, carpets, to bear so heavily on hats and caps, etc., leat her goods as upon cheaper than we did some oi lier classes, the last year. There has tariff on tlie raw ma- been a disposition on serial going into the tlie part of manufacmiinufaeture of them turers for some time greatly enhances the past to improve the prices. lam in favor style, quality and finof free raw material ish of goods, which, for the manufactories, taken in connection Most of our merchants with the gradual drift made their purchases toward lower prices, before the bill went enables merchants to into effect, and its es- sell their customers a sects will not lie felt better quality of goods until the merchants go for t lie same prices to restock.” they iiave been compelled to charge them tor inferior goods in times past. Cotton .■-.j fabrics have been steadily declining in : price for some time tSfe' and are now selling at low figures. There has been very little, if tt ny, change In the "SStra > cost of footwear, but ‘T'Ja we are able to Kive S'. 1 better values for the i .« same money. Queensd - ware is selling at a / ' ", lower scale of prices ™te than formerly. The .’ss&k.-. reduction of duties on U&Uu •- imported queensware tey'K.' has materially reduc- , t.xiUil ed retail prices of foreign ware. Prices of B *' j . tin have declined and - ■ will probably continue to do so - American irefete 1 - ' manufacturers are constantly improving . r . their methods of man- ’ ufacture and the re.zsfr;, , suit will be a higher - grade of tin for about • i -’ -' the same or lower ■ prices than tin has sold for in the past. -- Builders’ hardware was never so cheap as now. To sum up, I am of the opinion that there is a universal tendency to improvement in the quality of all goods. There is less shoddy put upon the market each year. The natural result will be consumers will get better goods for their money than formerly.” It will be seen by reference to the various interviews that the consensus of opinion is that the new system will result in a cheapening of goods and improvement in tlieir quality. “A condition devoutly to be wished. ’ ’ The Sentinel has always contended that high tariff meant high prices for necessaries, and we think the unbiased statements of facts of persons in a position to know whereof they speak fully supports that view of the matter.